(Santa Fe, NM)-The New Mexico State Department of Education (SDE)
today advised teachers to save their receipts for purchases of books
and classroom supplies due to a change in federal tax law. Under the
change, eligible educators can deduct up to $250 in qualified expenses
paid or incurred in tax years 2002 or 2003.

Eligible educators include teachers, instructors, counselors, principals
or aides in both public and private schools in grades K-12 who have
worked at least 900 hours in elementary or secondary education during
the school year.

The unreimbursed expenses must have been paid or incurred for books,
supplies, computer equipment (including related software and services),
other equipment and supplementary materials used in the classroom. The
deduction is allowed even if the educator does not itemize deductions
on Schedule A. Previously, these expenses were deductible only as a
miscellaneous itemized deduction subject to the 2% of adjusted gross
income limit.

Educators who excluded education savings bond interest or payments
from qualified tuition programs, or made tax-free withdrawals from an
education savings account, will be able to claim the new deduction only
to the extent that their qualified expenses exceed the tax-free amounts.

Details on the change are available in IRS Publication 3991, "Highlights
of the Job Creation and Worker Assistance Act of 2002," available
on the IRS web site at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).